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Index IDEA: US small caps gain strength in 2019 as new investor tools emerge

May 10, 2019

After underperforming US large cap stocks by more than 6% in 2018—and more than 8% over the past year as of May 3—US small cap stocks have changed course in 2019, gaining 20.2% relative to an 18.7% return for US large cap stocks through May 3. This recent run of stronger relative performance highlights the investor need to manage exposure to this important asset class.

“The year-to-date shift in US equity index leadership from large to small helps demonstrate why risk management is important, which is why we introduced futures on four major US equity indexes, including the Russell 2000.”

Sean Smith, managing director, derivatives licensing, FTSE Russell:

“FTSE Russell indexes can be used as the basis of investment tools designed to provide exposure to a broad array of asset classes and market cap tiers. Our indexes are uniquely designed to provide comprehensive, transparent and accurate measures of global equity market returns and can therefore be valuable tools for investors.”

For more information on derivatives based on the Russell US Indexes, go to the FTSE Russell website.

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All information is provided for information purposes only. All information and data contained in this publication is obtained by the LSE Group, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data is provided “as is” without warranty of any kind. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the accuracy, timeliness, completeness, merchantability of any information or of results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the FTSE Russell Indexes for any particular purpose to which they might be put. Any representation of historical data accessible through FTSE Russell Indexes is provided for information purposes only and is not a reliable indicator of future performance.

Views expressed by Sean Smith of FTSE Russell and Tim McCourt of CME Group are as of May 9th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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